diff --git a/easybuild/framework/easyblock.py b/easybuild/framework/easyblock.py
index 5b38a1a4a7..ea393446c2 100644
--- a/easybuild/framework/easyblock.py
+++ b/easybuild/framework/easyblock.py
@@ -2081,11 +2081,10 @@ def _set_module_as_default(self):
 
         sets the default module version except if we are in dry run.
         """
-        mod_folderpath = os.path.dirname(self.module_generator.get_module_filepath())
-
         if self.dry_run:
             dry_run_msg("Marked %s v%s as default version" % (self.name, self.version))
         else:
+            mod_folderpath = os.path.dirname(self.module_generator.get_module_filepath())
             self.module_generator.set_as_default(mod_folderpath, self.version)
 
     def cleanup_step(self):
diff --git a/easybuild/tools/filetools.py b/easybuild/tools/filetools.py
index 3b56ac65a6..acd0644ad4 100644
--- a/easybuild/tools/filetools.py
+++ b/easybuild/tools/filetools.py
@@ -171,18 +171,18 @@ def write_file(path, txt, append=False, forced=False):
         raise EasyBuildError("Failed to write to %s: %s", path, err)
 
 
-def readlink(symlink_path):
+def resolve_path(path):
     """
-    Read symlink target at the specified path to the given path.
+    Return fully resolved path for given path.
 
-    :param symlink_path: symlink file path
+    :param path: path that (maybe) contains symlinks
     """
     try:
-        target_symlink_path = os.readlink(symlink_path)
+        resolved_path = os.path.realpath(path)
     except OSError as err:
-        raise EasyBuildError("Get target of symlink %s failed: %s", symlink_path, err)
+        raise EasyBuildError("Resolving path %s failed: %s", path, err)
 
-    return target_symlink_path
+    return resolved_path
 
 
 def symlink(source_path, symlink_path, use_abspath_source=True):
diff --git a/easybuild/tools/module_generator.py b/easybuild/tools/module_generator.py
index 8e2daead71..3711c7605f 100644
--- a/easybuild/tools/module_generator.py
+++ b/easybuild/tools/module_generator.py
@@ -41,7 +41,7 @@
 
 from easybuild.tools.build_log import EasyBuildError
 from easybuild.tools.config import build_option, get_module_syntax, install_path
-from easybuild.tools.filetools import mkdir, readlink, read_file, remove_file, symlink, write_file
+from easybuild.tools.filetools import mkdir, read_file, remove_file, resolve_path, symlink, write_file
 from easybuild.tools.modules import modules_tool
 from easybuild.tools.utilities import quote_str
 
@@ -719,7 +719,7 @@ def set_as_default(self, module_folder_path, module_version):
         default_filepath = os.path.join(module_folder_path, 'default')
 
         if os.path.islink(default_filepath):
-            link_target = readlink(default_filepath)
+            link_target = resolve_path(default_filepath)
             remove_file(default_filepath)
             self.log.info("Removed default version marking from %s.", link_target)
         elif os.path.exists(default_filepath):
diff --git a/test/framework/filetools.py b/test/framework/filetools.py
index 9b0c653226..efcf3eb9ca 100644
--- a/test/framework/filetools.py
+++ b/test/framework/filetools.py
@@ -355,23 +355,35 @@ def test_is_readable(self):
         os.chmod(test_file, 0)
         self.assertFalse(ft.is_readable(test_file))
 
-    def test_symlink_readlink_file(self):
-        """Test read link target file"""
+    def test_symlink_resolve_path(self):
+        """Test symlink and resolve_path function"""
 
         # write_file and read_file tests are elsewhere. so not getting their states
-        fp = os.path.join(self.test_prefix, 'test.txt')
-        txt = "test_my_link_file"
-        ft.write_file(fp, txt)
+        test_dir = os.path.join(os.path.realpath(self.test_prefix), 'test')
+        ft.mkdir(test_dir)
+
+        link_dir = os.path.join(self.test_prefix, 'linkdir')
+        ft.symlink(test_dir, link_dir)
+        self.assertTrue(os.path.islink(link_dir))
+        self.assertTrue(os.path.exists(link_dir))
+
+        test_file = os.path.join(link_dir, 'test.txt')
+        ft.write_file(test_file, "test123")
 
-        link = os.path.join(self.test_prefix, 'test.link')
         # creating the link file
-        ft.symlink(fp, link)
+        link = os.path.join(self.test_prefix, 'test.link')
+        ft.symlink(test_file, link)
 
         # checking if file is symlink
         self.assertTrue(os.path.islink(link))
+        self.assertTrue(os.path.exists(link_dir))
+
+        self.assertTrue(os.path.samefile(os.path.join(self.test_prefix, 'test', 'test.txt'), link))
 
-        # reading link target and comparing to file name
-        self.assertEqual(os.path.realpath(fp), os.path.realpath(ft.readlink(link)))
+        # test resolve_path
+        self.assertEqual(test_dir, ft.resolve_path(link_dir))
+        self.assertEqual(os.path.join(os.path.realpath(self.test_prefix), 'test', 'test.txt'), ft.resolve_path(link))
+        self.assertEqual(ft.read_file(link), "test123")
 
     def test_remove_symlinks(self):
         """Test remove valid and invalid symlinks"""